Miya Moore Business Continuity Planning Business continuity planning helps manufacturers protect their operations during and after a disaster but to be effective planning should begin before an emergency ever occurs An adequate BCP can minimize costly disruptions that may take the form of production delays loss of IT telecommunications and even facility shutdowns Hence there are two main categories that manufacturers should evaluate when planning for business continuity internal resources and external resources Internal resources include Personnel Communications systems Data back-up systems Production systems Materials equipment Payroll capability Emergency power supplies and Utility systems External resources include Public emergency services Civic organizations Emergency medical facilities Contractors suppliers Insurance carriers and Utility companies Susceptibility And Functionality One of the first things that manufacturers should think about when planning for business continuity is their susceptibility of being affected by an emergency and the potential costs This will help to determine what resources are crucial for continuing operations and should be prioritized Consider evaluating the following factors The likelihood of an emergency geography weather conditions past emergencies etc Those areas that are absolutely necessary to keep the company functioning equipment personnel etc Amenities that are critical to business functionality gas power water sewer telecommunications etc Potential costs associated with the physical impact of an emergency repair reconstruction etc Potential costs associated with the business impact of an emergency loss of market share production loss breach of contractual agreements legal costs etc and Management controls that are essential to survival and recovery payroll continuity accelerated financial decision making etc Alternative Contractors Another important factor that manufacturing companies should consider is alternative contractors Because of the interdependent nature of the manufacturing sector alternative contractors should be considered and business relationships should be developed with them so that they can be used if the primary contractor cannot service business needs due to emergency For this reason it is equally important that suppliers also have proficient BCPs in place A key supplier that is ill-equipped when affected by an emergency can be devastating Thus it is imperative to coordinate with suppliers or with other parties with whom business is regularly conducted to analyze disaster recovery strategies For instance consider having a priority clause in contractual agreements to determine the organizations that will be served first in the event of an emergency Potential Temporary Facilities Likewise manufacturing companies should consider having potential temporary facilities to accommodate operations in the event that their facilities become inaccessible during the time of the disaster and afterwards If feasible backup manufacturing sites can be very important and vital to the continuum of operations and will allow manufacturers to pre-plan any necessary migration steps with suppliers Accordingly any instructions or procedures relating to the production process should be up to date to avoid wasted time and to facilitate the recreation of the process at the alternative location The following reasons are just a few benefits to having a potential temporary facility Data recovery with proper data backups data can be recovered and processing can continue at the alternative location Inventory management avoid having all inventory at one location so that there is enough inventory at other key facilities to continue production at the alternative location and Backup equipment tools if feasible extra equipment and tools can be stored offsite to save lead time on production at the alternative location rather than replacing rebuilding tools destroyed by the disaster Assessing The Ability To Work Remotely Furthermore manufacturing companies should consider the extent to which personnel can work remotely Over the past several years the ability to work remotely has become a popular need In the wake of an emergency the capacity for personnel to work offsite can be vital to the survival and recovery of the organization Because safety is a top concern you should assess the systems that need to be in place in case conditions reach a level to where its not safe to travel there is an outage and or facility shutdown To assess the ability to work remotely and ensure high-level functionality of personnel be sure to consider the following Working with your IT department to create a viable safe remote access system Creating remote work guidelines and training personnel on set up procedures Making guidelines accessible to all personnel via handbook email etc Increasing communication during the disaster period and afterwards Routinely inspecting troubleshooting the remote-access system to ensure it has the infrastructure to handle business needs and the influx of personnel use during an emergency and Offering real-time information and real-time visibility to monitor regular operating conditions and maintain machinery Emergency Preparedness Planning Lastly while it is important to have a proficient BCP manufacturers should also have an Emergency Action Plan EAP The EAP focuses more on workplace safety and properly responding to an emergency rather than business continuity However the two plans should work in concert to warrant a safe workplace and assist manufacturers with regaining functionality after a disaster An effective EAP should include Sufficient evacuation procedures Proper communication systems emergency notification and reporting methods and Simulated emergency drills All things considered manufacturers should take a preemptive approach to ensure the continued existence of their organization by having the proper emergency and continuity plans in place An inadequate BCP or the lack thereof can pose a severe threat to the recovery and restoration of an organization Thus consider reexamining the current continuity plan to evaluate its sufficiency and be sure to periodically examine emergency plans to assess whether any changes and or updates are necessary By and large it is critical to understand the importance of business continuity planning and its necessity so that manufacturing companies are prepped to sustain and continue operations during and in the aftermath of an emergency Miya Moore is an attorney in the Birmingham office of Burr Forman where she practices in the firms Labor Employment practice She may be reached at 205 458-5352 or by email at mmoore burrcom